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Heads Up!

October 9, 2017 | Weekly Commentary

According to CCH, the highly respected tax reporting service, the House approved the Fiscal Year (FY) 2018 Budget Resolution (BR) by a 219–to-206 vote on October 5. The measure is intended to serve as the legislative vehicle for tax reform. All present Democrats and 18 Republicans voted against the measure.

Meanwhile, the Senate Budget Committee approved its own budget resolution (BR) on October 5. A full Senate vote is expected the week of October 16. The two BRs are expected to go to conference to reconcile differences to reach full congressional passage, which would unlock the reconciliation process, enabling tax reform legislation to pass with only a simple GOP majority.

The BR includes a policy statement on tax reform and specifically recommends five policy items:

(1) simplifying the tax code to make it fairer for American families and businesses and reducing time needed for tax compliance;

(2) substantially lowering tax rates for individuals and consolidating the current seven income tax brackets;

(3) repealing the Alternative Minimum Tax (AMT);

(4) reducing the corporate tax rate; and

(5) transitioning the tax code to a more competitive system of international taxation.

We believe Congress is only 20% through the process of passing meaningful tax reform. There are many hurdles to clear before legislation is passed into law. We will keep you informed on the progress of this important legislation.

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